Walmart is expanding its drone delivery program in the Dallas-Fort Worth area. The company had already tested it by conducting 20,000 deliveries, but will now expand the zone to 1.8 million households.
Walmart’s main strength is its delivery and logistical system. By partnering with Microsoft, Walmart has been able to leverage its existing supply chain and integrate technology. NPR says:
Walmart has unveiled plans to dive further into the world of artificial intelligence — and drones — to improve its customers’ shopping experiences.
In a Tuesday keynote at the CES trade show in Las Vegas, the nation’s largest retailer announced it will be expanding its drone delivery to 1.8 million additional households in the Dallas-Fort Worth metropolitan area later this year. Drones aren’t new to Walmart — which has already completed 20,000 drone deliveries across seven states to date — but company leaders say that this expansion is a sign of growing demand and efficiency.
Walmart’s primary competitor online remains Amazon, who started in the space and remains dominant in it. Its drone delivery program is meant to deliver small items for now, but could become bigger as drones get bigger. The Verge continues:
Walmart launched its drone delivery program with Zipline and DroneUp in Arkansas in 2021 before expanding it to more states in 2022. The newly expanded service in Texas allows customers living within 10 miles of a participating Walmart to get items delivered to their homes via drone.
Since there is a weight limit, customers can only have smaller products like cold medicine, birthday candles, and even a carton of eggs delivered. Walmart says deliveries arrive in 30 minutes or less, with some reaching customers’ doorsteps in as fast as 10 minutes.
Drones will likely not crowd the skies with delivers for now, but future proofing is important. Walmart will have to find economical ways to deliver cheap items using expensive technology.
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